Play doo company is trying to choose between two projects, which both generate perpetual, growing streams of nominal cash flows. the firm must do one or the other, but cannot do both. project a will generate a net after-tax cash flow of $5 million at the end of the first year. the cash flow from the project is expected to grow at 6% per year on a nominal basis. project b will produce an initial net cash flow of only $2 million, but the anticipated growth rate of the cash flows is 8% nominally. each project costs $150 million dollars to implement. 1. which project has the higher internal rate of return (irr)? (show your calculations.) 2. if you were to use npv rule, at what costs of capital would you choose to invest in project a rather than project b? recall the firm must do one or the other. （ show your work step by step.)

Colorado rocky cookie company offers credit terms to its customers. at the end of 2018, accounts receivable totaled $715,000. the allowance method is used to account for uncollectible accounts. the allowance for uncollectible accounts had a credit balance of $50,000 at the beginning of 2018 and $30,000 in receivables were written off during the year as uncollectible. also, $3,000 in cash was received in december from a customer whose account previously had been written off. the company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year. 1. prepare journal entries to record the write-off of receivables, the collection of $3,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.2. how would accounts receivable be shown in the 2018 year-end balance sheet?